Under the IMF’s Extended Fund Facility (EFF) program in Mongolia, no additional funding has been provided in 2019. Thanks to the program, international banks and donor countries have issued USD 728 million to Mongolia in 2017. In 2018, total funding of USD 300 million out of expected USD 836 million have been issued. In other words, the country received almost USD one billion funding since the beginning of the EFF program, which is due in May 2020. Therefore, the currency swap arrangement between the Bank of Mongolia (BoM) and the People’s Bank of China will end in August 2020. The agreement allowed the two central banks to swap CNY 15 billion (USD 2.2 billion) for MNT 5.4 trillion. The countries first entered into the swap arrangement in 2011 and it was extended three times in 2012, 2014 and 2017. The extension agreement, which began in Shanghai in August 2019, is ongoing and has not been finalized. The spokesperson said that if the Chinese side rejects the extension proposal, BoM will seek another option to return the received yuan.

Published Date:2019-12-24